Tips for Buying New Construction in Colorado
Buying new construction in Colorado may seem similar to purchasing a resale home, but there are some important differences in the process for a home buyer. New homes offer some benefits, including picking your own finishes and working with the builder. However, like any real estate decision, there are pros and cons of buying a new construction home
If you're considering a new construction home, start with these tips:
||Use your own real estate broker/REALTOR®.
Get your Colorado real estate agent involved early in the process. If you’re looking for an agent, visit the Signature Realty Find an Agent page.
||Know that the list price maybe non-negotiable.
Home builders typically have an established set of prices based on the housing market conditions. If they lower the price of one home in a new community, it drops the comparable value of the other houses in the community too. Home buyers can ask for builder concessions in the form of additional upgrades. Work with your REALTOR to negotiate for your best interests.
||Prepare for more paperwork.
Expect to get a lengthy builder addendum or a builder's contract in addition to the standard purchase forms used by a Colorado REALTOR/broker in a real estate transaction. Read all contracts carefully and consult with your REALTOR or a real estate attorney if you have questions.
||Expect floor plans to change - slightly.
New construction floor plans don’t always stay the same. For example, room sizes are typically close estimates, with measurements rounded in the early versions. In community developments, floor plans can rarely be modified. Unlike building a custom home, most Colorado community sites are based on a pre-approved set of plans.
||Ask when your new home will be finished.
Work with your home builder to understand how long the construction process will take. For a cautious estimate, add an extra month to the projected completion date. Also, be sure to anticipate changes. A supplier may run out of a product, a price may change, and unpredictable Colorado weather may impact the building process.
For more new construction tips and advice on choosing the right builder for your home, visit the REcolorado Home Blog
When Building a New Home, An Experienced REALTOR® is Key
Do you need an experienced Colorado real estate agent if you’ll be building your new home? The answer is “yes!” Here’s why:
Your REALTOR provides Guidance
Buying new construction, like any home purchase, is a complex and large transaction with many financial implications. A Colorado REALTOR will be there to represent your interests throughout the process.
Your REALTOR is Your Advocate
A REALTOR is contractually obligated to protect you and is committed to look out for your best interests. When you enter the ring, you know there's someone in your corner.
Your REALTOR handles Negotiation
Whether it’s terms, financing options, or upgrades, a REALTOR will work on your behalf to negotiate what is best for you with the builder of your new home.
Your REALTOR streamlines the Closing Process
A REALTOR will manage the closing process. Closing on a home purchase, even a new construction home, includes financing work with title companies, inspections, and more.